The paper analyzes the application of the provisions of the European Charter of Local Self-Government in the Czech Republic. It focuses mainly on the scope of local government (Art. 4 of the Charter) and financial resources (Art. 9 of the Charter). The paper deals with the reservations which were done by Czech Republic to Art. 9 of the Charter. The aim of this paper is to bring readers selected specifics of local governments in the Czech Republic that in practice influence the fulfillment of Charter.

In modern times, the difficult financial situation of municipalities, which are heavily indebted, highlights problem of fiscal local autonomy more than before. It is obvious that for the implementation of the principle of autonomy (principle of independence) of local government is necessary to ensure the financial autonomy (fiscal local autonomy, tax autonomy, proportionality and adequacy of funds) of municipalities. There should be no doubt, that local governments should have enough own funds that can implement the tasks and functions set out in the law. Author of the chapter presents the regulatory and legal problems in terms of the Polish Constitution.